Commodities » Energy

Oil and natural gas daily review (March 12, 2013)

Contributed by Angel Broking

Crude Oil

Nymex crude oil prices increased marginally by 0.1 percent yesterday taking cues from rise in risk appetite in the global market sentiments which led to expectations of rise in demand for the fuel. Weakness in the DX also supported an upside in the prices.

However, sharp upside in the prices was capped as a result of rise in Saudi Arabia's crude oil production along with slow industrial growth in China. Crude oil prices touched an intra-day high of $92.15/bbl and closed at $92.06/bbl in yesterday's trading session.

On the domestic bourses, prices traded on a flat note and declined marginally after touching an intra-day low of Rs.4,955/bbl and closed at Rs.4,978/bbl on Monday. Depreciation in the Indian Rupee cushioned sharp fall in the prices on the MCX.

API Inventories Forecast

The American Petroleum Institute (API) is scheduled to release its weekly inventories today and US crude oil inventories are expected to rise by 2.4 million barrels for the week ending on 8th March 2013. Gasoline stocks are expected to decline by 1.5 million barrels and distillate inventories are expected to fall by 1.6 million barrels for the same week.


Outlook

For the intra-day perspective, we expect crude oil prices to trade on a positive note on the back of rise in risk appetite in the global market sentiments. Additionally, weakness in the DX will also support an upside in the crude oil prices. However, sharp upside in the crude prices will be capped on account of rise in Saudi Arabia crude oil production, slow industrial growth in China along with forecast for rise in US crude oil inventories.

In the Indian markets, Appreciation in the Indian rupee will add downside pressure on prices on the MCX platform.